March 02, 2016

State System leaders support 2016-17 funding request

Contact: Kevin Hensil, khensil@passhe.edu

Harrisburg – Pennsylvania’s State System of Higher Education Chancellor Frank T. Brogan and other System leaders today urged members of both the House and Senate appropriations committees to support increased funding for the state-owned universities as they consider the proposed 2016-17 Commonwealth budget.

The State System has requested a 2016-17 state appropriation of $521.2 million, which would represent an approximately $87.8 million increase over the level recommended in this year’s still-unfinished budget.
The System is facing at least $41 million in mandatory cost increases next year, and also is seeking an additional nearly $47 million from the state to invest in student support services and new academic programs, such as those in the high-demand STEM and healthcare fields; online learning; and other initiatives important to strengthening Pennsylvania’s economy.
“New investment from the state is necessary to meet rising costs over which we have no control, especially pensions and healthcare; to make strategic investments to meet the Commonwealth’s needs; and, most important, to be able to continue to offer the high-quality, high-value education our students, their future employers and the Commonwealth expect and deserve,” Mr. Brogan said.
The State System has not received an increase in state funding since 2007-08, and has seen its appropriation cut three times by a combined more than $90 million during that time. It is receiving essentially the same amount of funding from the state this year as it did in 1997-98, even though it is educating 13,000 more students today.
The 14 State System universities have eliminated more than $300 million from their operating budgets over the last decade, reducing overall staffing levels by some 900 employees. Still, some costs continue to rise, creating significant pressure on all of the campuses.
The chancellor appeared before both committees along with Dr. Michael A. Driscoll, president of Indiana University of Pennsylvania; Drew Johnson, president of East Stroudsburg University of Pennsylvania’s student government association; and Lois Johnson, State System associate vice chancellor for administration and finance.

Board of Governors Chairman Guido M. Pichini, who also attended the budget hearings, said in support of the State System’s appropriations request: “Investing in the State System and in our students is one of the best investments the Commonwealth can make. Nearly 90 percent of our students are Pennsylvania residents; the vast majority will stay here after graduation—to live, to work and to raise their families. They truly represent Pennsylvania’s future.”
Going without a funding increase from the state since before the beginning of the recession has required the State System universities to make significant budget cuts virtually every year, Mr. Pichini said. In addition to reductions in staffing and student services, the universities also have had to delay tens of millions of dollars in maintenance projects, leaving some campus buildings badly in need of repairs.
“Every one of our universities has had to make extremely difficult decisions to balance their budgets,” Mr. Pichini said. “At least beginning to restore funding to the State System is essential.”
In addition to responding to questions related to next year’s appropriations request, Mr. Brogan also told the committee that the State System is beginning to look at ways it can better organize itself for the future.
“We are working with the Board of Governors to begin an effort to identify options for operational and organization modernization across the System,” he said. “As part of this process, we are looking at what other states and systems are doing to maximize their efficiency and effectiveness.”
Pennsylvania’s State System of Higher Education is the largest provider of higher education in the Commonwealth, with about 107,000 degree-seeking students and thousands more who are enrolled in certificate and other career-development programs. Collectively, the 14 universities that comprise the State System offer more than 2,300 degree and certificate programs in more than 530 academic areas. Nearly 520,000 State System university alumni live in Pennsylvania.
The State System universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock and West Chester Universities of Pennsylvania. The universities also operate branch campuses in Oil City (Clarion), Freeport and Punxsutawney (IUP), and Clearfield (Lock Haven), and offer classes and programs at several regional centers, including the Dixon University Center in Harrisburg and in Center City in Philadelphia.